two or more joint depositors, where one of the depositors has died, interest should be paid in the manner indicated below:

at the contracted rate on the maturity of the deposit;

in the event of the payment of the deposit being claimed before the maturity date, the bank should pay interest at an applicable rate prevailing on the date of placement of the deposit, without charging penalty;

in the event of death of the depositor before the date of maturity of the deposit and the amount of the deposit being claimed after the date of maturity, the bank should pay interest at the contracted rate till the date of maturity. From the date of maturity to the date of payment, the bank should pay simple interest at the applicable rate operative on the date of maturity, for the period for which the deposit remained with the bank beyond the date of maturity. However, in the case of death of the depositor after the date of maturity of the deposit, the bank should pay interest at a rate operative on the date of maturity in respect of savings deposits held under RFC Account Scheme, from the date of maturity till the date of payment;

if, no request from the claimant/s, the bank agrees to split the amount of term deposit and issues two or more receipts individually in the name/s of the claimant/s, it should not be construed as premature withdrawal of the term deposit for the purpose of levy of penalty provided the period and aggregate amount of the deposit do not undergo any change.

Note : In the case of claimant/s being residents, the maturity proceeds may be converted into Indian rupees on the date of maturity and interest be paid for the subsequent period at the rate applicable to a deposit of similar maturity under the domestic deposit scheme.

Addition or deletion of name/s of joint account holders.

A bank may, at the request of all the joint holders, allow the addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint holder. However, in no case should the amount or duration of the original deposit undergo a change in any manner whatsoever. The bank should ascertain the reasons from the applicants for doing so and also satisfy themselves about the bona fide nature of the request. Further, opening of FCNR (B) Accounts jointly with a resident as well as opening of accounts in the names of Pakistani/ Bangladeshi nationals, though of Indian origin, will be subject to the instructions issued by FED, RBI from time to time.

Payment of interest on FCNR (B) deposits of NRIs on return to India.

Banks may allow FCNR (B) deposits of persons of Indian nationality/ origin who return to India for permanent settlement to continue till maturity at the contracted rate of interest, if desired. Except the provision relating to rate of interest and reserve requirements as applicable to FCNR (B) deposits, for all other purposes, such deposits should be treated as resident deposits from the date of return of the account holder to India. Premature withdrawal of such FCNR (B) deposits should be subject to penal provisions of the Scheme. Banks should convert the FCNR (B) deposits on maturity into Resident Rupee Deposit Account or RFC Account (if eligible) at the option of the account holder. The rate of interest on the new deposit (Rupee account or RFC Account) should be the relevant rate applicable for such deposit account.

The penal provisions would not be applicable in the case of premature conversion of balances held in FCNR (B) deposits into Resident Foreign Currency Accounts by Non-Resident Indians on their return to India.

A bank should pay interest at its discretion at the time of conversion of FCNR (B) account into RFC/Resident Rupee Account even if the same has not run for a minimum maturity period, subject to the condition that the rate of interest should not exceed the rate payable on savings bank deposits held under RFC Account Scheme.

Payment of interest on term deposit maturing on Saturday/ Sunday/ holiday/ non-business working day.

In case of reinvestment deposits, banks should pay interest for the intervening Saturday/ Sunday/ holiday/ non-business working day on the maturity value. However, in the case of ordinary term deposits, the interest for the intervening Saturday/ Sunday/ holiday/ non-business working day should be paid on the original principal amount.

Prohibitions

No bank should:

accept or renew a deposit over five years.

discriminate in the matter of rate of interest paid on the deposits, between one deposit and another accepted on the same date and for the same maturity, whether such deposits are accepted at the same office or at different offices of the bank, except on the size group basis. The permission to offer varying rates of interest based on size of the deposits will be subject to the following conditions:

Banks should, at their discretion, decide the currency-wise minimum quantum on which differential rates of interest may be offered. For term deposits below the prescribed quantum with the same maturity, the same rate should apply.

The differential rates of interest so offered should be subject to the overall ceiling prescribed.

Interest rates paid by the bank should be as per the schedule and not subject to negotiation between the depositor and the bank.

pay brokerage, commission or incentives on deposits mobilized under FCNR (B) Scheme in any form to any individual, firm, company, association, institution or any other person.

employ/engage any individual, firm, company, association, institution or any other person for collection of deposit or for selling any other deposit linked products on payment of remuneration or fees or commission in any form or manner.